No./Title: F450 – Moving Expenses	Resp. Office: FINANCE	Effective Date: 07/01/2016
Category: Accounting	Last Review: 02/17/2020	Next Review: 02/17/2022
Contact: Mike Ebbs, Associate Vice Chancellor	🕿 901.448.5523	🖂 mebbs@uthsc.edu
Forms: UTHSC Household Moving Expenses Request Form UT T-5 Moving Stipend Request Form (PDF) Form
Related Policies: UT Fiscal Policy FI0450 – Moving Stipend

PURPOSE

UT Fiscal Policy FI0450 – Moving Stipend provides guidelines on the payment of a moving allowance for newly hired faculty and staff members. UTHSC Fiscal Procedure F450 – Moving Expenses sets forth the procedures and guidelines to be followed by departments and offices with respect to payment of an approved allowance to cover moving expenses. This procedure should be used as the official reference as it is specific to the Health Science Center (HSC).

MOVING ALLOWANCE

At the HSC prior approval for payment of moving expense allowance (household goods and/or personal belongings) is submitted to the Chief Business Officer by the respective department. The new hire will make all arrangements for moving company, travel and other costs. Purchasing will no longer get bids and process moving company purchase orders. Departments will no longer process travel expense forms related to the move.

PRIOR APPROVAL FOR ALLOWANCE

The prior approval UTHSC – Household Moving Expenses Request Form must include the maximum amount of moving expense allowance requested along with the justification to explain why a moving allowance to a newly hired faculty or staff member is in the best interests of the University.

MAXIMUM ALLOWANCE AMOUNTS

The maximum amount payable for deans and vice chancellors is $21,500.
The maximum amount payable for all other faculty or staff is $13,500.
All amounts above represent maximum allowances; therefore, budgetary or other constraints could dictate that lesser amounts be paid.

ALLOWABLE COSTS

Moving or storage of household goods. Household goods are defined as personal property belonging to the prospective employee and immediate family at the time of shipment. This includes household furnishings, appliances, clothing, cars, boats and similar personal property.
Travel costs to Memphis for the immediate family.
Temporary housing costs (hotel) after the start date and prior to the actual move.
Costs of house hunting trips.

PROCESSING OF PAYMENT

The moving allowance is paid directly to the new hire via UT Form T-5 Moving Stipend Request Form.
The allowance is paid based on the actual costs incurred for approved moving expenses.
The departmental business manager or director must obtain receipts and process the T-5 payment at an amount that represents actual costs up to the maximum approved allowance.
The allowance can only be processed in one payment.
Once the “Gross Amount” of the allowance is entered on the T-5, the income tax withholding is automatically calculated, along with the applicable FICA Tax and Medicare Tax. The net amount will be paid to the employee.
A copy of the approved UTHSC “Household Moving Expense Request Form” must be attached to the completed T-5.
Detailed receipts are to be maintained in the departmental files, and not sent with the T-5.
All payments of moving expense allowance are paid on the next payroll, and the charge on the Departmental Ledger will be listed as G/L 258768. The payment will be reported on the IRS Form W-2 at the end of the year. To ensure that these payments are reported in the proper tax year, the payment will only be processed in the same calendar year as the employee’s start date or later.

MOVING OF PROFESSIONAL GOODS AND PROPERTY PROCEDURES

Professional goods are defined as research equipment, research supplies and materials and similar items needed by the new employee to fulfill responsibilities at the HSC. The University will pay full costs for approved shipments of professional goods transferred from the employee’s prior institution to the HSC.
A list of items to be transferred to the HSC must be prepared by the new employee and approved by the Chief Financial Officer of the institution from which the items are received. This step must be completed prior to the movement of the goods. The list must then be approved by the respective chair, dean, and Campus Chief Business Officer.
The moving of professional goods and property are processed as normal university expenses and would be arranged through standard University Purchasing processes. The costs paid for professional goods and property are not considered part of the moving allowance.
Title of the professional goods will transfer to the HSC upon acceptance. Copies of the final acceptance will be sent to the institution from which the items are received as well as to Purchasing Services and Accounts Payable.
Equipment will be assigned an official University inventory tag number and added to the department’s inventory.